There are many surgical procedures which require the removal and/or cutting of bone in a patient. Such procedures often involve the use of specific cutting tools. For example, in some procedures, specific cutting tools can be provided to ream the internal canal of bones for preparation of implants or to ream the outer surfaces of bones for preparation of implants and drilling holes for bone screw fixation. Conventional cutting tools, however, generally provide no mechanism for identifying the quality or state of the cutting tool. As a result, many cutting tools are disadvantageously used until they no longer function properly.